Egypt's 5Y Credit Default Swap Spread Widened to 798 bps After Government Declared State of Emergency

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Egypt's 5Y CDS spread widened to 798 basis points yesterday and pierced through its recent high after massive violence and killings (1, 2) forced Egypt's government to declare a state of emergency. Egypt's 5Y CDS spread, or the cost to insure $10 million of Egypt's government debt, is still well below the highs made in late June/early July when Mohamed Morsi was ousted from power (1, 2). Something to keep an eye on.

Source: CMA, part of S&P Capital IQ

Related: EL-ERIAN: Anyone Following Egypt Needs To Keep An Eye On One Useful Measure, And It's Not The Stock Market (Business Insider, July 3, 2013)